The Professional Ticker Reader

These are stocks that we expect to out-perform the markets. Cash and derivative strategies are advised thereon. Please stay online to enable loading of graphics from our servers. Please also read the trading tips section at the end of the newsletter.

Arvind Mills - this scrip has been making an interesting chart pattern which many fibonnacci / ellioticians would get excited about. The scrip has managed to close above the a significant congestion level and at the highest point after July 1997 on the monthly charts. The trend determining oscillators are pointing towards a bullish outlook and the upmove is likely to gain momentum after the scrip manages to close above the 141 levels on a sustained basis. In a firm market, we expect the stock to top at the 164 - 166 levels in the medium / long term time frame ( 5 - 8 months ). A buy is recommended.

Bajaj Auto - this scrip was recommended by us frequently inspite of brokerage firms downgrading the stock. The stock in turn decided to favour the bulls and is in a major uptrend. Technical traders will note the high relative strength of the scrip vis-a-vis the Nifty at 116 ( where 100 = base ) and the higher tops and bottoms formation. The scrip moves along a long term bullish trendline spanning 2 years. The upmove is gaining momentum and a sustained closing above the 1250 levels will take the scrip higher at an accelerated pace. The stock already trades near lifetime highs. Buy with a patient outlook.

B.I.L.T. - this scrip was recommended recently near the 100 mark and has appreciated 20 % in a fortnight. The scrip is in an intermediate / long term upmove and the rally is appearing to gain momentum. We feel this scrip is one of the fastest potential gainers in the market in the near / medium term. Note the oscillators that are pointing towards a bullishness in the undertone and traded volumes that are perking up. We recommend a buy.

Dabur - this scrip is a recent addition to the derivatives list and is witnessing action as the upward momentum accelerates. The scrip has managed to close at the lifetime highest on quarterly charts which shows strength. The stock enjoys a high relative strength of 241 vis-a-vis the Nifty ( where 100 = base ) and the oscillators are pointing towards a further upmove. We recommend a buy for the long term investor. We target a price of 161 in a few months.

Federal Bank - this banking scrip is rallying on relatively lower volumes as the private banking stocks are buzzing on hopes of m&a activity. This scrip is on the verge of a breakout above the 180 mark wherein lower resistance will be witnessed as the present levels are near lifetime highs. A sustained close above the 180 mark will be a confirmed buy trigger. It maybe noted that this recommendation is highly speculative in nature.

Indian Hotel - we had recommended this scrip in our recent edition but the stop loss was triggered at recommended levels. Currently, the scrip is near the threshold levels of a powerful breakout above the 670 mark, after which, the upmove will be accelerated. The momentum indicators are showing a bullish outlook and traded volumes are picking up. The lower relative strength vis-a-vis the Nifty at 43 ( where 100 = base ) is the only negative. We recommend a buy.

Indusind Bank - this private sector bank is another new entrant to the f&o list and is making higher tops and bottoms formation amidst higher volumes. The stock has managed to close at an all time high on a closing basis in the monthly / quarterly charts. That indicates a good build up in momentum. A sustained closing above the 67 levels will be a confirmatory trigger for the bulls to buy.

ITC - this scrip has been a regular feature in our newsletters and has also been a star performer. The bulls are amply rewarded and our immediate targets have been achieved. Technical traders will note how the scrip moves in a classic higher tops and bottoms formation and has a very high relative strength of 256 vis-a-vis the Nifty ( where 100 = base ). The oscillators are pointing towards a fresh upmove and the traded volumes are heartening. We feel a price target of 1789 is justified in the medium term. Buying is recommended.

Tata Tea - this scrip was another recent recommendation that did not perform as expected in the short term. However, it maybe noted that the chart reading still points to a bullish undertone on the scrip as the higher tops and bottoms formation remains intact. Traded volumes are fair and the oscillators are pointing towards a further upside. As long as the counter stays above the 524 levels, we expect the price to touch the 690 levels in the medium / long term time frame of 9 - 14 months. Buying is recommended.

Titan Inds - this scrip has seen a spectacular rally in the last 12 months and has earned a place in the market out-performers club. The relative strength now stands at 114 vis-a-vis the Nifty ( where 100 = base ) and the oscillators are pointing towards a continued uptrend for now. We feel an all time high is a sign of strength and higher traded volumes are indicating increased investor participation. Buying is recommended on significant declines only.

BSE Sensex - the Sensex has gained for 7 consecutive sessions as a higher tops and bottoms formation is being made. We feel the 6560 - 6585 band will be a minor support in the near term and upsides will encounter resistance at the 6824 levels in the coming week.

Your call of action - Since the Sensex futures are not very liquid, we suggest trading the Nifty 50 instead.

Nifty 50 - The Nifty has gained like the Sensex and has exhibited a confirmed breakout from the bearish channel to close above the 2073 resistance. We feel a profit taking bias at higher levels will be a natural fallout after a big upmove of 200 points in 3 weeks. A support exists at the 2034 levels where the Nifty could see hectic short covering / fresh buying. Our outlook remains positive, barring profit sales.

Your call of action - avoid fresh trades and enter on declines only. Await recommendation via daily newsletter / sms.

CNX IT - the IT index has seen a smart recovery after a failed breakout above the red trendline. The 2900 levels will be a critical level to watch on the daily charts and a sustained closing above this trendline is a bullish sign. A fall can take the index down by 2.5 - 3 %

Your call of action - Since the Sensex futures are not very liquid, we suggest trading the Nifty 50 instead.

Dow Jones Industrial Average - this old economy index is showing signs of fatigue at higher levels and needs to stay above the 10400 levels to stay bullish. The upside resistance at the 10580 will be the development to watch. we expect resistance at higher levels.

Your call of action - this is a pure academic study.

Arvind Mills I Bajaj Auto I B.I.L.T. I Dabur I Federal Bank I Ind Hotel I Indusind Bank I ITC I Tata Tea I Titan Inds I BSE Sensex I Nifty I CNX-IT I Dow Jones I Nasdaq I FTSE I Top I Close window I Print page

Nasdaq - this new economy index is showing a sustained strength after a breakout above the bearish channel. We feel the 2100 levels will be a strong resistance and multiple tops are witnessed at that level. On the downside, watch the 2020 levels for support.

Your call of action - this is a pure academic study.

FTSE - this UK index is showing signs of sustaining the breakout above the bearish channel and is likely to get support at the 4950 levels. The 5014 levels will be an effective resistance in the short term. A sustained close above this resistance will be the bullish trigger for fresh upmoves.

Your call of action - this is a pure academic study.

Trading tips for the week

The put / call ratio is high and is currently at the 0.30 : 1 levels and the outstanding positions in the derivatives segment have shown a routine fall on expiry. The FII investments are continuing to remain negative.
The index heavy-weights are showing strength again. This in turn will boost the indices and cause a feel good factor. The only worry is that this upbeat sentiment should continue.
Trades must be executed in small volumes due to the higher volatility expected. Trade fewer counters and conserve cash for future opportunities.
Standby for fresh recommendations via SMS on a real - time basis.

The author is a Mumbai based investment consultant and invites feedback at Vijay@BSPLindia.com and ( 022 ) 23438482 / 23400345.

SEBI disclosure :- The author has no positions in any securities mentioned above.